EpiPen maker reaches settlement over price increases

In another chapter of the ongoing EpiPen story, drug maker Mylan announced it has reached a $465 million settlement agreement with the U.S. Justice Department and other government agencies.

This follows questions about whether the pharmaceutical company had overcharged Medicaid for the life-saving emergency allergy treatment by improperly classifying it as generic. This misclassification caused the Medicaid and Medicare programs to pay more than they should have, according to a New York Times report.

If a medicine is considered a generic instead of a brand-name drug, states may receive a smaller discount from drug companies.

Mylan has been under intense scrutiny for months after raising the price of a pack of two EpiPens to more than $600. When Mylan bought the product in 2007, prices were about $100.

Each EpiPen contains epinephrine, a drug that’s available as a low-cost generic, but Mylan has the exclusive right to sell the drug as part of a patented auto-injector.

The drug maker said in a statement that the settlement does not imply admission of wrongdoing.

To learn more about what’s driving up the cost of prescription medications of all types, check out our in-depth look at high Rx costs. Be sure to sign up for email updates on the EpiPen and other health care affordability issues.